Brent oil may retrace into $88.26-$89.91 range

SINGAPORE, Nov 12 (Reuters) - Brent oil may retrace into a support range of $88.26-$89.91 per barrel, following its failure to break a resistance at $93.96.

The failure marks the completion of the bounce from $89.16, or the first round of the bounce. The support range is formed by the 61.8% retracement of the uptrend from $69.79 to $118.13 and the 50% projection level of a downward wave C from $118.13.

Although the support zone might be strong, the bounce it triggered appears disappointingly weak. The weakness indicates that the bounce may adopt a sideways mode, mostly confined within the range of $88.26-$93.96.

A break above $93.96 could lead to a gain into the $96.57-$99.67 range. On the hourly chart, the bounce triggered by the support at $89.72 seems to have ended around a resistance at $94.

The contract is expected to retest the support at $89.72. A break above $94 could open the way towards the $95.51-$97.73 range, which overlaps with the zone of $96.57-$$99.67 on the daily chart.

* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are published exclusively on the Workspace platform, a London Stock Exchange product.

** No information in this analysis should be considered as business, financial, or legal advice. Each reader should consult his or her own professional or other advisers for business, financial, or legal advice regarding the products mentioned in the analyses.